Tuesday, October 15, 2002

Aetna Stands By Ailing Vendor, For Now (Connecticut)
Hartford Courant story - "Aetna says it's confident the ailing Magellan Health Services Inc. can properly manage mental health services for its members - but isn't saying yet how long it might keep Magellan as a vendor. Aetna has a contract with Maryland-based Magellan through 2003 that covers most of its 14.4 million members. But Aetna has said it's rethinking its strategy on how to provide behavioral health care. Magellan is the nation's largest managed care company specializing in behavioral health, with contracts covering roughly 68 million people. Magellan, which has warned it may breach terms of bank loans, was downgraded by rating agencies last week. Also, trading of its stock was suspended by the New York Stock Exchange, which is moving to delist the company."  
  

Warner Announces Emergency Budget Cuts (Virginia)
Washington Post story on $858 million in budget cuts ordered by Gov. Mark R. Warner - "Spared deep cuts – at least for now – was funding for public safety, Medicaid and direct aid to public education. Direct state care for the mentally ill in state institutions also escaped cuts, although funding for community-based mental health services did not."  
  

$1.2 million grant bolsters Family Drug Court (Kentucky)
Courier-Journal story on a federal grant that will allow Jefferson County's Family Drug Court program - which combines counseling, parenting classes, and drug and alcohol treatment - to become fully operational.  
  

Cuts to state's mental health system means fewer beds (Iowa)
Daily Gate City story - "Two years of budget cuts to the state's mental health system have trimmed the number of beds available for long-term care nearly in half, leaving some patients without the treatment they need."